M  N  O  P  Q  R  S

Major land resource area (MLRA) - Major land resource areas are geographically associated land resource units delineated by the Natural Resources Conservation Service and characterized by a particular pattern that combines soils, water, climate, vegetation, land use, and type of farming. There are 204 MLRAs in the United States, ranging in size from less than 500,000 acres to more than 60 million acres.

Make allowance (or milk manufacturing marketing adjustment) - The margin between the government support price for milk and the CCC’s purchase price for butter, nonfat dry milk, and cheese. This margin is administratively set to cover the costs of "making" milk into butter, nonfat dry milk, or cheese to reach the desired level of prices for milk in manufacturing uses.

Malnutrition - A human condition that results from an excess, imbalance, or deficit of nutrients. It is generally defined as some measurable degree of ill health due to inadequate nutrition that can be prevented or cured by improved nutrition. Malnutrition can include starvation and result in protein deficiency, iodine-deficient goiters, tooth decay, osteoporosis, and other conditions. It may also include obesity, some types of arteriosclerosis, hypertension due to excess sodium, anemias due to lack or iron, folic acid, or vitamin B-12, as well as classic nutritional deficiencies that cause scurvy, beriberi, pellagra, xerophthalmia, and rickets.

Mandatory price reporting - Currently, packers and processors are not required to report the prices they pay for the animals they buy from producers or the terms of sale. Rather, daily sales and price information is collected by AMS from companies on a voluntary basis. AMS reporters also attend live cash market sales (auctions) to collect price information. However, as more and more animals are sold under formula pricing, other contract, or captive supply arrangements, the open cash markets have become less helpful as benchmarks of prices being paid. Some producers believe that such arrangements also enable packers to more easily conceal potential anti-competitive practices, and argue that more transparency (i.e., more readily and widely available price and sales information) is needed in livestock markets. This has led to various legislative proposals for mandatory price reporting. Although the proposals have differed, most essentially would require packers to report, immediately and publicly, the prices they paid for animals, and the terms of the sale.

Margin - The amount of money or collateral deposited by a customer with a broker, by a broker with a clearing member, or by a clearing member with the clearinghouse, for the purpose of insuring against loss on open futures contracts. The margin is not partial payment on a purchase. (1) Initial margin is the total amount of margin per contract required by the broker when a futures position is opened; (2) maintenance margin is a sum that must be maintained on deposit at all times. If the equity in a customer’s account drops to, or under, the level because of adverse price movement, the broker must issue a margin call to restore the customer’s equity. Sometimes called a performance bond.

Margin call - (1) A request from a brokerage firm to a customer to bring margin deposits up to initial levels; (2) a request by the clearinghouse to a clearing member to make a deposit of original margin, or a daily or intra-day variation payment, because of adverse price movement, based on positions carried by the clearing member.

Mariculture - The form of aquaculture where fish, shellfish, or aquatic plants are cultured in a salt water environment.

Market access - The extent to which a country permits imports. A variety of tariff and nontariff trade barriers can be used to limit the entry of foreign products.

Market Access Program (MAP) - MAP, previously called the Market Promotion Program, is administered by the Foreign Agricultural Service and uses funds from the Commodity Credit Corporation. It helps producers, exporters, private companies, and other trade organizations finance promotional activities for U.S. agricultural products. MAP is designed to encourage development, maintenance, and expansion of commercial agricultural export markets. Activities financed include consumer promotions, market research, technical assistance, and trade servicing. The Export Incentive Program, which is part of MAP, helps U.S. commercial entities conduct brand promotion activities including advertising, trade shows, in-store demonstrations, and trade seminars. MAP is authorized in Section 244 of the FAIR Act of 1996. The program promotes exports of specific U.S. commodities or products in specific markets. Under MAP, program participants are reimbursed for their expenses in carrying out approved promotional activities. Participating organizations include nonprofit trade associations, state regional trade groups, and private companies. Funding authority is limited to $90 million annually for fiscal years 1996-2002.

Market allocation - A quantity provision in a fruit or vegetable marketing order specifying the maximum amount of the regulated commodity that can be sold for a given use or market (such as the domestic fresh market).

Market basket - Average quantities of consumables, including U.S. farm foods, purchased per household for a given base period, used to compute an index of retail prices.

Market loss payments - Term used in the Omnibus Consolidated and Emergency Appropriations Act, FY1999 (P.L. 105-277, October 21, 1998), to describe the one-time $3.1 billion in emergency income support payments authorized for eligible grain, cotton, and dairy farmers. The act states that such funds are to compensate farmers for the loss of 1998 income caused by "regional economic dislocation, unilateral trade sanctions, and the failure of the government to pursue trade opportunities aggressively."

Market price - The price per bushel (or pound or hundredweight) of an agricultural commodity paid in the private sector. It can sometimes refer to the price paid at domestic seaports or large inland terminal markets (such as daily cash prices listed in newspapers) and sometimes refers to the farm price.

Market Promotion Program (MPP) - An export promotion program authorized by the FACT Act of 1990 that replaced the Targeted Export Assistance (TEA) program authorized by the Food Security Act of 1985. The MPP was renamed the Market Access Program (MAP) under the FAIR Act of 1996.

Market structure - Characteristics of an industry that relate to its economic performance, such as the number of buyers and sellers, product differentiation among firms, barriers to entry, costs, degree of integration, and diversification.

Market transition payments - Referred to variously as AMTA payments, contract payments, or production flexibility contract payments made to farmers under Title I (the Agriculture Market Transition Act (AMTA)) of the FAIR Act of 1996.

Marketing assessments - Producers and first purchasers of some supported commodities are required to pay an assessment as a contribution toward achieving budget deficit reduction targets. Under the FAIR Act of 1996, assessments are imposed on sugar processors and on producers and first buyers of peanuts. Tobacco also is subject to deficit reduction assessments. The FAIR Act of 1996 eliminated the milk marketing assessment.

Marketing assistance loans - Nonrecourse loans made available to producers of wheat, feed grains, upland and ELS cotton, rice, soybeans, and minor oilseeds under the Agricultural Market Transition Act provisions in the FAIR Act of 1996. The new law largely continues the commodity loan programs as they were under previous law. Loan rate caps are specified in the law. Marketing loan repayment provisions apply should market prices drop below the loan rates. For farmers who forego the use of marketing assistance loans, loan deficiency payment rules apply.

Marketing certificate - A certificate that may be redeemed for a specified amount of CCC-owned commodities. The certificates may be generic or for a specific commodity.

Marketing contract - Prices (or pricing mechanisms) are established for a commodity before harvest or before the commodity is ready for marketing. Most management decisions remain with the grower, who retains ownership of both production inputs and output until delivery. The farmer assumes the risks of production but shares price risks with the contractor. Marketing contracts are commonly used for crops and not livestock. According to the USDA, about 40% of the value of all fruits and vegetables produced in 1997 were under marketing contracts. Marketing contract shares for selected other commodities were: sugar beets, 82%; milk, 60%; cotton, 33%; cattle, 10%; soybeans, 9.4%; corn, 8%. See production contract.

Marketing loan - Authorizes producers to repay their commodity loan at a lower "market" level.

Marketing loan repayment provisions - A loan settlement provision, first authorized by the Food Security Act of 1985, that allows producers to repay nonrecourse loans at less than the announced loan rates whenever the world price or loan repayment rate for the commodity is less than the loan rate. Marketing loan provisions became mandatory for soybeans and other oilseeds, upland cotton, and rice and were permitted for wheat, feed grains, and honey under amendments made by the FACT Act of 1990. The FAIR Act of 1996 retains the marketing loan provisions for feed grains, wheat, rice, upland cotton, and oilseeds.

Marketing quota - Under certain agricultural programs; that quantity of a commodity that will provide adequate and normal market supplies. When marketing quotas are in effect (only after approval by two-thirds or more of the eligible producers voting in a referendum), growers who produce in excess of their farm allotments are subject to marketing penalties on the "excess" production and are ineligible for government price-support loans. Quota provisions have been suspended for wheat, feed grains, and cotton since the sixties. Rice quotas were abolished in 1981. Poundage quotas are still in use for domestically consumed peanuts, but not for exported peanuts.

Marketing spread - The difference between the retail price of a product and the farm value of the ingredients in the product. This farm-retail spread includes charges for assembling, storing, processing, transporting, and distributing the products.

Marketing year - The 12-month period, generally from the beginning of a new harvest, over which a crop is marketed. For example, for wool, mohair, and Hawaiian sugarcane, the marketing year is January 1-December 31; for honey, it is April 1-March 31; for wheat, barley, and oats, it is June 1-May 31; for flue-cured tobacco, it is July 1-June 30; for cotton, peanuts, and rice, it is August 1-July 31; for corn, sorghum, soybeans and sugar beets, it is September 1 - August 31; for soymeal, soyoil, mainland sugarcane, all tobacco but flue-cured, and milk, it is October 1-September 30. The crop marketing year beginning and ending dates are published by NASS in the Agricultural Prices annual summary. In contrast, the crop year is the calendar year of production.

Marketing orders and agreements - Orders and agreements (authorized by the Agricultural Marketing Agreement Act of 1937, as amended) allow producers to promote orderly marketing through collectively influencing the supply, demand, or price of a particular commodity so as to create orderly marketing. Research and promotion can be financed with pooled funds. Once approved by a required number of a commodity’s producers—usually two-thirds—the marketing order is binding on all handlers of the commodity within the geographic area of regulation. It may limit the quantity of goods marketed, or establish the grade, size, maturity, or quality of the goods. Marketing orders have been established for milk, fruits, vegetables, and other commodities. Marketing agreements may contain more diversified provisions, but are enforceable only against those handlers who enter into the agreement. An order can be terminated when a majority of all producers favor its termination or when USDA determines that the order no longer serves its intended purpose. See market allocation, orderly marketing, prorate, reserve pool, shipping holiday, and specialty crops.

Marketing quotas (or allotments) - Authorized by the Agricultural Adjustment Act of 1938, these quotas (sometimes called poundage quotas) limit marketings of certain commodities. The marketing quota, which must be approved by at least two-thirds of the eligible producers voting in a referendum, is intended to ensure an adequate and normal supply of the commodity, and ensure that production and supplies are not excessive. Growers who market in excess of their quotas pay penalties on the "excess" and are ineligible for government price-support loans. Quotas have been suspended for wheat, feed grains, and cotton since the 1960s. Rice quotas were abolished in 1981. Marketing quotas still are used in conjunction with the tobacco program and the peanut program. The authority for standby marketing allotments for domestically produced sugar and crystalline fructose mandated by the FACT Act of 1990 was eliminated by the FAIR Act of 1996.

Marrakesh Decision - At the conclusion of the Uruguay Round in Marrakesh, Morocco, participating ministers recognized the LIFDCs may experience a lack of adequate supplies of basic food stuffs at reasonable terms and conditions, including short-term financing. They agreed to establish mechanisms to assure that trade liberalization does not adversely affect the availability of food aid under the Food Aid Convention of 1986, and to give full consideration to requests from LIFDCs to improve their agricultural productivity and infrastructure.

Maximum contaminant levels (mcl's) - From the Safe Drinking Water Act, the term means the specific limitations on the amount of a contaminant in a public water system. For each contaminant, the EPA sets "maximum contaminant levels goals" which are defined as the level of contaminant at which no known or anticipated adverse affects on the health of persons occur and which allows an adequate margin of safety. [42 U.S.C. §300g]

Maximum tolerated dose (MTD) - Loosely, the highest dose of a chemical that when administered to a group of test animals does not increase the death rate during a long-term study. The purpose of administering MTD is to determine whether long-term exposure to a chemical might lead to any adverse health effects in a population, when the level of exposure is not sufficient to cause premature mortality due to short-term toxic effects. The maximum dose is used, rather than a lower dose, to reduce the number of animals that need to be tested (and thus, the cost of animal testing), in order to detect an effect that occurs only rarely. This analysis is used in establishing chemical residue tolerances in foods.

McIntire-Stennis Act of 1962 - P.L. 87-788 (October 10, 1962) makes funding available to the state agricultural experiment stations and to forestry schools and programs at the land grant colleges of agriculture for forestry research. The research covers such areas as reforestation, woodlands and related watershed management, outdoor recreation, wildlife habitats and wood utilization. Many of the research projects are performed cooperatively with scientists at the laboratories of the Forest Service. McIntire-Stennis funds are distributed by a formula that allocates $10,000 to each state, with 40% of the remainder being distributed according to a state’s share of the nation’s total commercial forest land, 40% according to the value of its timber cut annually, and 20% according to its state appropriation for forestry research.

Medfly - A shortened name for the Mediterranean fruit fly, a destructive pest of fruits and vegetables that is found throughout most of Central America. The Animal and Plant Health Inspection Service is involved in programs to keep the Medfly from spreading north into Mexico, where it could easily enter the United States on imported winter fruits and vegetables. Eradication efforts in California, Florida and Texas have prevented infestations from becoming established. Hawaii is infested with the Medfly and no eradication efforts currently are under way. Travelers returning to the continental United States from Hawaii or a foreign country are prohibited from bringing into the country fresh fruits, meats, plants, birds, and plant and animal products that may harbor pests or diseases.

Mega-reg - A term meaning a large set of regulations that some have used to describe the extensive new rules issued by USDA in July 1996 that are aimed at controlling pathogens in meat and poultry products, including mandatory hazard analysis and critical control point (HACCP) plans.

Memorandum of agreement (MOA) - An agreement between federal agencies, or divisions/units within an agency or department, or between federal and state agencies, which delineate tasks, jurisdiction, standard operating procedures or other matters which the agencies or units are duly authorized and directed to conduct. Sometimes referred to as a memorandum of understanding (MOU).

Mercado Commun del Sur (MERCOSUR) - A customs union between Argentina, Brazil, Paraguay, and Uruguay, which came into effect on January 1, 1995. Chile and Bolivia have become associate members.

Merchant Marine Act of 1920 - P.L. 66-261, also known as the Jones Act, provides for the promotion and maintenance of a U.S. merchant marine. Provisions dealing with cabotage (i.e., coastal shipping) require that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed wholly by U.S. citizens. In addition, amendments to the Jones Act, known as the Cargo Preference Act, provide permanent legislation for the transportation of waterborne cargoes in U.S.-flag vessels.

Methane - A gas created by anaerobic decomposition of organic compounds. Natural gas is composed mostly of methane. Methane is a so-called greenhouse gas (see greenhouse effect). Agricultural wastes, specially animal wastes, are a major source of methane releases to the atmosphere.

Methanol - A liquid alcohol (also known as methyl alcohol or wood alcohol), formed in the destructive distillation of wood or made synthetically, and used especially as an alternative fuel, a gasoline additive, a solvent, an antifreeze, or a denaturant for ethyl alcohol. As a gasoline additive it lowers the carbon monoxide emissions but increases hydrocarbon emissions.

Methemoglobinemia ("blue baby syndrome") - An oxygen deficiency caused by increased levels of nitrates in the blood, particularly to infants and small children. The term has been used in agricultural areas because of health concerns caused by high levels of nitrates in rural drinking water supplies and private wells.

Metropolitan statistical area (MSA) - A county of group of contiguous counties that contain at least one city of 50,000 inhabitants or more, or twin cities with a combined population of at least 50,000. In addition, contiguous counties are included in an MSA if they are socially and economically integrated with a central city.

Methyl bromide - A fumigant used for soil treatment, to control pests in postharvest storage, for killing pests on fruits, vegetables, and grain going into export trade, for plant quarantine treatment, and for fumigation of buildings. Because methyl bromide contributes to depletion of stratospheric ozone, it is subject to phase out requirements of the 1987 Montreal Protocol on Ozone Depleting Substances and of the Clean Air Act (CAA). The Montreal Protocol and Vienna Adjustments require a complete phase out in industrialized countries by the year 2010, and a future freeze in developing country use. A 1998 amendment (P.L. 105-178, Title VI) conformed the Clean Air Act phase out date with that of the Montreal Protocol. All methyl bromide regulations so far exempt quarantine and pre-shipment treatment of agricultural commodities; however, this exemption is being reevaluated after completion of additional scientific assessments. Methyl bromide is regulated as a pesticide under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), as a hazardous substance under the Resource Conservation and Recovery Act (RCRA), and is subject to reporting requirements under the Emergency Planning and Community Right to Know Act (EPCRA).

Metric ton - Usually abbreviated mt. or MT, a metric ton is 2,204.62 pounds, compared to a short ton of 2,000 pounds. Generally, international agricultural trade data are cited in metric tons.

Migrant farmworker - A person who travels across state or country boundaries to do agricultural work of a seasonal or other temporary nature, and who is required to be absent overnight from his or her permanent place of residence. Exceptions are immediate family members of an agricultural employer or a farm labor contractor, and temporary foreign workers.

Migratory Bird Treaty Act of 1918 - P.L. 65-186 (July 3, 1918), as amended, regulates the taking of wild birds and implements the provisions of four different bilateral treaties for bird conservation (with Canada, Mexico, Japan, and Russia). Very few of its provisions affect farmers more than any other citizen, save when bird populations become pests. The act and the associated treaties allow taking of birds to prevent serious injury "to the agricultural or other interests in any particular community." As implemented, the practice has been to use non-lethal methods where possible, especially for native species. The control of bird pests is managed by the Animal and Plant Health Inspection Service.

Milk equivalent - A measure of the quantity of fluid milk used in a processed dairy product, usually expressed on a milkfat basis. For example, one pound of cheese is the equivalent of 9.88 pounds of milk.

Milk-feed price ratio - A measure of the value of 16% protein ration (feed) to one pound of whole milk. As with the hog-corn ratio, this relationship is an indicator of the profitability of milk production.

Milk marketing orders - Administered by the Agricultural Marketing Service, federal milk marketing orders were first instituted in the 1930s to promote orderly marketing conditions by, among other things, applying a uniform system of classified pricing throughout the farm milk market. Federal milk marketing orders regulate handlers that sell milk or milk products within an order region, by requiring them to pay not less than an established minimum price for the Grade A milk they purchase from dairy producers, depending on how the milk is used. This classified pricing system requires handlers to pay a higher price for milk used for fluid consumption (Class I) than for milk used in manufactured dairy products such as yogurt, ice cream, cheese, butter and nonfat dry milk (Class II, Class III and Class III-A products). The FAIR Act of 1996 requires USDA to consolidate the number of federal milk marketing orders into 10 to 14 regions, down from 32, by 1999.

Minnesota-Wisconsin price (M-W price) - A component of the basic formula price for farm milk used in federal milk marketing orders. It is a survey of the average price Minnesota and Wisconsin plants are paying farmers for Grade B milk to be used in processed dairy products.

Minimal nutritional value - Refers to foods that may not be sold in competition with the school lunch and breakfast programs. These are foods that USDA has determined contain little if any nutritional value. For example, sugar candy, soda pop without fruit juices, and chewing gum are considered to be foods of minimal nutritional value. Candy containing nuts or chocolate is considered to have some nutritional value.

Minimum access - In the Uruguay Round Agreement on Agriculture, countries are obliged to provide minimum levels of imports for products subject to tariffication. Access is assured by tariff-rate quotas.

Minimum tillage - The minimum soil manipulation necessary for crop production. Conservation tillage, reduced tillage, and no-till farming are related terms.

Minor crops - Crops that may be high in value but that are not widely grown. Many fruits, vegetables, and tree nuts come under this definition. The IR-4 program is one publicly funded program to help producers of minor crops with their unique problems.

Minor oilseeds - Oilseed crops other than soybeans and peanuts; usually a reference to the other oilseeds eligible for marketing assistance loans under the FAIR Act of 1996 (sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed).

Mitigation - A system whereby the adverse impacts of an activity on the environment are minimized or cancelled by requiring the party to limit the action or replace the resources affected; the term is commonly used in connection with §404 of the Clean Water Act to require parties who drain wetlands to mitigate by constructing or restoring wetlands of equal size somewhere else on the property. The 1990 farm bill amends swampbuster to provide for mitigation.

Mitigation bank, wetlands - A bank is created when wetlands at a site are restored, enhanced or created in advance of destruction of similar wetlands in nearby locations. The bank then sells "credits" in the bank to permit applicants under Section 404 who are required, as a permit condition, to offset the negative impacts their project will have on wetlands. Banks may be established by public entities or private enterprise. The FAIR Act of 1996 has a provision allowing USDA to establish a pilot banking program.

Mohair Recourse Loan Program - A program authorized by the emergency provisions of the FY1999 USDA appropriations act (P.L. 105-277, October 21, 1998) that makes interest-free recourse loans of $2.00 per pound on mohair produced prior to October 1, 1998. Final date to obtain a loan is September 30, 1999. The producer-owned mohair used as loan security must be stored in approved bonded warehouses. Loans mature not later than 1 year following disbursement. The program is administered by the Farm Service Agency.

Monetization - A P.L. 480 provision added by the Food Security Act of 1985 that allows private voluntary organizations to sell a small percentage of donated P.L. 480 commodities within the recipient country. The currency generated by these sales can then be used for such purposes as defraying the cost of food distribution within the country.

Monoculture - A pattern of crop or tree production that relies on a single plant variety.

Montreal Protocol on Ozone Depleting Substances - An international agreement, to which the U.S. is a signatory, for controlling emissions of chemicals that deplete stratospheric ozone (including methyl bromide). The Clean Air Act Amendments of 1990 contain provisions for implementing the Montreal Protocol, as well as explicit, separate authority for the Environmental Protection Agency to regulate ozone depleting chemicals.

Morbidity - Rate of disease incidence; an important measure in epidemiological studies.

Morrill Act of 1862 - Enacted July 2, 1862 (chapter 130, 12 Stat. 503), this law allocated federal land to each state and directed the states to sell the land and use the proceeds to establish a college dedicated to the agricultural and mechanical arts. States without federal lands within their borders received land in scrip, giving them the right to sell federal land located in other states. The act resulted in the establishment of the land grant colleges of agriculture. The purpose of the Act was not only to improve the economic and social welfare of farmers, but also to make higher education with a practical application generally available to all segments of U.S. society. The Act pertained only to the original establishment of the colleges of agriculture, and is not an authority under which the colleges currently receive federal funds.

Morrill Act of 1890 - Enacted August 30, 1890 (chapter 841, 26 Stat. 417), this law authorized additional direct appropriations for the land grant colleges of agriculture that had been established under the Morrill Act of 1862. The most significant feature of the second Morrill Act was that the 1862 schools could receive the additional funds only if they admitted blacks into their programs or if they provided separate but equal agricultural higher education to black students. In the period following the Civil War, sixteen southern states established separate land grant colleges of agriculture for black students under this Act; Congress designated Tuskegee University an 1890 institution at a later date. Federal funds for research and extension at the 1890 schools are provided under subsequent acts, not the second Morrill Act.

Most-favored Nation (MFN) - A commitment that a country will extend to another country the lowest tariff rates it applies to any third country. MFN is a basic principle of the General Agreement on Tariffs and Trade (GATT) (1947). Almost all countries are effectively accorded permanent MFN status by the United States. However, Title IV of the Trade Act of 1974 established conditions on U.S. MFN tariff treatment to certain non-market economies, one of which is certain freedom-of-emigration requirements (better known as the Jackson-Vanik amendment). The Act authorizes the President to waive a country’s full compliance with Jackson-Vanik under specified conditions, and this must be renewed by June 3 of each year. Once the President does so, the waiver is automatic unless Congress passes (and sustains a Presidential veto of) a disapproval resolution. MFN status for China, which had been originally suspended in 1951, was restored in 1980 and has been continued in effect through subsequent annual Presidential extensions. Since the Tiananmen Square incident in 1989, however, the annual renewal of China’s MFN status has been a source of considerable debate in the Congress. Several Members have sought through legislation to terminate China’s MFN status or to impose additional conditions relating to improvements in China’s actions on various trade and nontrade issues. Agricultural interests generally have opposed attempts to block MFN renewal for China, contending that several billion dollars annually in current and future U.S. agricultural exports could be jeopardized if that country retaliated.

Mulch - A natural or artificial layer of plant residue or other material on the soil surface. Mulch reduces erosion, conserves soil moisture, inhibits weed growth, and can provide the soil with organic matter as it breaks down. Mulch till prepares the soil so as to leave plant residues (or other mulching materials) on or near the surface.

Multi-Fibre Arrangement (MFA) - A multilaterally negotiated umbrella agreement, adopted in 1973 within the GAAT framework, setting guidelines for bilaterally negotiated quantitative controls on imports of textiles and clothing products by the industrialized countries from "low cost" suppliers where these cause "market disruption".

Multifunctionalism - A concept advanced by the European Commission in the context of the WTO that would allow governments to offer farmers compensation for additional function such as meeting other demands from society.

Multilateral agreement - A trade agreement involving three or more countries (as with the World Trade Organization) in contrast to a bilateral agreement (as with the US-Canada Free Trade agreement) involving only two countries.

Multilateral trade negotiations (MTN) - Negotiations between General Agreement on Tariffs and Trade (GATT) member nations that are conducted under the auspices of the GATT and that are aimed at reducing tariff and nontariff trade barriers. The World Trade Organization has now replaced the GATT as the administrative body.

Multiple basing points - A method of regional pricing in milk marketing orders that would allow more than one basing point, or "surplus area," to be used. Surplus areas are administratively defined as areas with low Class I utilization, meaning that a relatively small percentage of the milk produced in an area is used in that area as Class I (fluid) milk. In a multiple basing point system, the order used as the basing point has the smallest Class I differential (the difference between the Class I price and the Class III price). The Class I differential for other orders is then based on transportation costs to the nearest basing point plus the minimum differential.

Multiple component pricing - The practice of valuing farm milk according to the value of its protein, fat, and mineral content. This practice has been adopted by many regions for federal milk marketing orders. Historically, milk was priced solely on the basis of fat content.

Multiple use - According to the Multiple Use and Sustained Yield Act of 1960 (P.L. 86-517, June 12, 1960), as amended, multiple use of the national forests means the "harmonious and coordinated management of the various resources, each with the other, without impairment of the productivity of the land, with consideration being given to the relative values of the various resources, and not necessarily the combination of uses that will give the greatest dollar return or the greatest unit output." Multiple use implies a sustained yield of outdoor recreation, range, timber, watershed, and wildlife and fish values.

Mutagen - An agent that causes a permanent genetic change in a cell other than that which occurs during normal growth. Testing to determine mutagenicity is one component of assessing the potential chronic toxicity of pesticides and other chemicals.

Mutual self-help housing - A program to assist groups of low-income families in building their own homes. Each family is expected to contribute at least 700 hours of labor in building homes for each other. Participating families generally have low income and are unable to pay for homes built by the contract method. The homes are generally financed by Section 502 loans.

Mycotoxins - Toxic substances produced by fungi or molds on agricultural crops that may cause sickness in animals or humans that eat feed or food made from contaminated crops. There are between 300 and 400 known mycotoxins, but of most concern, based on toxicity and occurrence, are aflatoxin, vomitoxin, zearalenone, funonisin, T-2 toxin, and T-2-like toxins (trichothecenes). GIPSA currently measures for aflatoxin in all exports shipments of corn, and measures for aflatoxin and vomitoxin on a voluntary basis in domestic shipments.

National Academy of Sciences (NAS) - An institution created by Congress in 1863 to provide science-based advice to the government. The sister organizations associated with the Academy are the National Academy of Engineers, Institute of Medicine, and the National Research Council. The Academies and the Institute are honorary societies that elect new members to their ranks each year. The bulk of the institutions’ science-policy and technical work is conducted by the National Research Council (NRC), created expressly for that purpose. The NRC’s Board on Agriculture addresses issues confronting agriculture, food, and related environmental topics.

National Agricultural Cost of Production Standards Review Board - Established in 1981 to annually review the cost of production methodology used by USDA in price-support programs.

National Agricultural Library (NAL) - A national depository of scientific and popular agricultural information located at the Agricultural Research Service’s research center in Beltsville, Maryland. NAL’s administration was merged with ARS in 1994.

National Agricultural Research, Extension, and Teaching Policy Act - Title XIV of Food and Agriculture Act of 1977 made USDA the leading federal agency for agricultural research, extension, and teaching programs. It also consolidated the funding for these programs.

National Agricultural Research, Extension, Education, and Economics Advisory Board - A 30-member board established by the FAIR Act of 1996 to replace three previous advisory committees. The Board advises USDA on national priorities and policies related to agricultural research, extension, and education.

National Agricultural Statistics Service (NASS) - A USDA agency that collects and publishes statistics on the U.S. food and fiber system, with offices located in each state’s department of agriculture.

National Ambient Air Quality Standards (NAAQS) - National standards set by the Environmental Protection Agency under authority of the Clean Air Act; NAAQS define the maximum allowable concentrations of specified air pollutants in outdoor (ambient) air. NAAQS have been set for carbon monoxide, particulate matter, sulfur oxides, nitrogen dioxide, lead, and ozone. "Primary" NAAQS protect human health, with a margin of safety; "secondary" NAAQS protect human welfare, which includes effects on soils, water, crops, vegetation, materials, etc.

National Appeals Division (NAD) - The National Appeals Division of USDA was established by the Department of Agriculture Reorganization Act of 1994 (Title II of P.L. 103-354) to consolidate and improve the hearing procedures for USDA claims and disputes. The statute and regulations provide that certain sections of the Administrative Procedure Act (APA), including the hearing requirements, do not apply to NAD proceedings. The NAD procedures govern informal and formal hearings covering appeals of decisions made by the rural development agencies, Natural Resources Conservation Service, Risk Management Agency, and the Farm Service Agency. The statute and regulations set forth the procedures for hearings, requirements for the presiding officers, requirements for communications between the decision-maker and persons interested in the matter, and other important issues. After a decision is made by a hearing officer, both the appellant and the agency have the right to a review by the NAD director, who then issues a final determination. The final determination of the NAD is reviewable and enforceable by the U.S. District Court in accordance with the judicial review provisions of the APA.

National Aquaculture Act of 1980 - P.L. 96-362 (September 26, 1980), as amended, is intended to promote and support the development of private aquaculture and to ensure coordination among the various federal agencies that have aquaculture programs and policies. It provided for a national aquaculture policy, including a formal National Aquaculture Development Plan; established a Joint Subcommittee on Aquaculture on which officials of USDA, Commerce, Interior, and nine other federal agencies sit; designated USDA as the lead agency for coordination; and authorized the National Aquaculture Information Center within the National Agricultural Library.

National Bank for Cooperatives (CoBank) - An institution of the Farm Credit System that provides financial services to approximately 2,000 agricultural cooperatives, rural utility systems, Farm Credit System associations and other businesses serving rural America. CoBank also finances agricultural exports and provides international banking services primarily to U.S. agricultural cooperatives.

National Cheese Exchange (NCE) - A now defunct private non-profit corporation that operated in Green Bay, Wisconsin. Every Friday morning for one-half hour, members of the NCE met to buy or sell cheddar cheese in 40-pound blocks and 500-pound barrels on the exchange. The closing prices were published and widely circulated throughout the dairy industry, and were used as the basis for buying and selling cheese throughout the food distribution system. Up until April 1997 the USDA used changes in the NCE price as a principal component in determining the basic formula price for all milk sold under federal milk marketing orders. Activity on the NCE was regulated by the Wisconsin Department of Agriculture and the Wisconsin Attorney General.

National Early Warning System - A program run by the Centers for Disease Control to increase federal support to state health departments to detect food borne diseases by increasing the number of scientists available to investigate food borne outbreaks and by enhancing laboratory-based surveillance of important food borne pathogens.

National Environmental Policy Act of 1970 - P.L. 91-190 (January 1, 1970) made a declaration of national environmental policy and established a continuing responsibility of the federal government to reach a number of substantive goals that embody nationwide improvements in environmental quality. Federal policies, regulations, and laws must be administered in accordance with NEPA. To insure this is accomplished, all federal agencies must consider the environmental consequences of their actions through the preparation of environmental impact statements (EIS). Also, the law creates the Council on Environmental Quality in the Executive Office of the President.

National Estuary Program - A program established under the Clean Water Act Amendments of 1987 to develop and implement conservation and management plans for protecting estuaries and restoring and maintaining their chemical, physical, and biological integrity, as well as controlling point source and nonpoint source pollution sources.

National farm program acreage - The number of harvested acres of feed grains, wheat, and cotton needed nationally to meet domestic and export use and to accomplish any desired increase or decrease in carryover levels. The acreage base for an individual farm was calculated as the producer’s share of the national farm program acreage. The FAIR Act of 1996 eliminated the need to calculate a national program acreage.

National forest - Originally, forest reserves, established by Presidential proclamation mostly between 1891 and 1909. Today, the boundaries of the 155 national forests cannot be modified without congressional authorization, although many (especially eastern) national forests are combined for easier administration. The 117 administrative units, commonly referred to as national forests, are managed by the Forest Service for multiple use and sustained yield of renewable resources, as determined in forest plans.

National Forest Management Act (NFMA) of 1976 - P.L. 94-588 (October 22, 1976) largely amended the Forest and Rangeland Renewable Resources Planning Act of 1974, which required a national, strategic planning process for renewable resources for the Forest Service, and comprehensive, interdisciplinary land and resource management plans for units of the National Forest System. The law was seen as necessary, because a lawsuit (commonly known as the Monongahela decision) had invalidated most timber practices in the national forests. NFMA substantially enacted detailed guidance for forest planning, particularly in regulating when, where, and how much timber could be harvested and in requiring public involvement in preparing and revising the plans. NFMA also established the Salvage Sale Fund and expanded other Forest Service trust funds and special accounts.

National Forest System (NFS) - The 192 million acres administered by the Forest Service for multiple use; comprised of 155 national forests (in 117 units) with 187 million acres, 20 national grasslands with 4 million acres, and 112 other units (e.g., purchase units, land utilization projects, research and experimental areas) with about 500,000 acres. While the NFS lands are concentrated in the West, the 25 million acres east of the 100th Meridian (the Great Plains) make the Forest Service the largest land manager in the East.

National grasslands - A type of unit designated by USDA and under Title II of the Bankhead-Jones Farm Tenant Act, permanently held by USDA as part of the National Forest System.

National Marine Fisheries Service (NMFS) - An agency within the National Oceanic and Atmospheric Administration (NOAA) at the Department of Commerce. NMFS administers programs that support the domestic and international conservation and management of living marine resources. NMFS provides services and products to support domestic and international fisheries management operations, fisheries development, trade and industry assistance activities, enforcement, protected species and habitat conservation operations, and the scientific and technical aspects of NOAA’s marine fisheries program. NMFS conducts voluntary seafood inspection on a fee-for-service basis, mainly as a marketing and quality program rather than as a food safety program.

National Milk Laboratory Certification Program - Under a Memorandum of Understanding with the National Conference on Interstate Milk Shipments, the Food and Drug Administration conducts a national certification program for state centralized laboratories which test dairy products for contaminants and residues. FDA maintains accreditation of milk laboratories and sample collection surveillance procedures by making triennial on-site evaluations of laboratory facilities and equipment and by testing annually the performance skills of analysts. The FDA also standardizes, evaluates, and certifies state and territorial milk laboratory evaluation officers and state sampling surveillance officers.

National Natural Resources Conservation Foundation (NNRCF) - A nonprofit private organization established by the FAIR Act of 1996 to promote and fund innovative solutions to conservation problems through effective partnerships. The Foundation can accept gifts and raise money. The NNRCF will conduct research, undertake educational activities, support demonstration projects, and make grants to state and local governments and nonprofit organizations. Appropriations are authorized at $1 million per year for 1997-99, but no appropriations have been provided and the Foundation is not yet operational. Similar foundations have been created for several other natural resource areas.

National Nutrition Monitoring and Related Research Act of 1990 - P.L. 101-445 was enacted to establish a comprehensive, coordinated program for nutrition monitoring and related research to improve the assessment of the health and nutrition of the U.S. population. The Act required: a program to achieve coordination of federal nutrition monitoring efforts within 10 years and assist states and local governments in participating in a nutrition monitoring network; an interagency board to develop and implement the program; and, an advisory council to provide scientific and technical advice and evaluate program effectiveness. The Act also required that dietary guidelines be issued every five years, and that any dietary guidance issued by the federal government for the general public be reviewed by the Secretaries of both Agriculture, and Health and Human Services.

National Organic Program - A program authorized by the Organic Foods Production Act of 1990 (Title 21 of the FACT Act of 1990) that would set national standards for organic products, and permit such products to be certified and labeled as "USDA Certified Organic." The Act authorized the program to begin in 1993. However, due to delays in developing the standards and to controversy over the proposed rule that was published in the Federal Register (December 16, 1997, Page 65849-65898) the program had not yet been implemented by mid-1999.

National Organic Standards Board - A board established by Title 21 of the FACT Act of 1990 to develop national standards for practices and substances to be used in implementing a National Organic Program. Producers meeting these standards can sell their products as "USDA Certified Organic." As of mid-1999 the standards had not been finalized.

National Partnership Office (NPO) - The NPO is responsible for implementing National Rural Development Partnership policies and activities. The NPO provides budgetary and financial technical assistance to State Rural Development Councils.

National peanut poundage quota - A maximum level of peanut production set by the Secretary of Agriculture every year by December 15, it limits the quantity of peanuts that producers can sell for domestic consumption. The national poundage quota is supposed to be set at a level equal to the quantity of peanuts in tons, that the Secretary estimates will be devoted in each marketing year to domestic edible, seed, and related uses. In the last two marketing years, the Secretary has effectively kept production low with the net result of quota holders making more per ton at the expense of consumers pay more per ton of peanuts.

National Pollution Discharge Elimination System (NPDES) - The system under the Federal Water Pollution Control Act whereby point sources of pollution are required to obtain permits in order to discharge wastes into the water. [33 U.S.C. §1342]

National Priorities List (NPL) - The list of abandoned hazardous waste disposal sites which the EPA has designated under CERCLA as priorities for the use of federal assistance to cleanup hazardous wastes to protect human health and the environment.

National Research Initiative Competitive Grants Program (NRI) - Generally referred to as the NRI, this program makes grants to scientists at both public and private laboratories for basic and applied agricultural research in priority areas as designated in the research title of the FACT Act of 1990. Grants are awarded competitively through a peer-review process.

National Resources Inventory (NRI) - A periodic survey of status and changing conditions of the soil, water, and related resources on private land conducted by USDA’s Natural Resources Conservation Service. The survey is conducted every 5 years, most recently in 1997. As of early 1999, the most recent published survey was for 1992.

National Rural Development Council (NRDC) - This is the federal component of the National Rural Development Partnership. The NRDC comprises representatives from various federal departments and national organizations whose activities or policies may affect rural areas. The NRDC provides guidance for the Partnership and works on behalf of State Rural Development Councils at the national level. It’s administrative office is housed in the U.S. Department of Agriculture.

National Rural Development Partnership - A collaborative effort comprised of representatives of the federal, state, local, and tribal governments, the private sector, and the nonprofit sector to promote rural development across the nation. The principle component of the Partnership is the State Rural Development Councils.

National Rural Economic Development Institute (NREDI) - Helps develop the capacity of the National Rural Development Partnership and its constituent organizations (State Rural Development Councils and the National Rural Development Council) by providing economic development-related training and consulting services.

National School Lunch Act - P.L. 79-396 (June 4, 1946) authorized federal cash and commodity support for school lunch and milk programs, "...as a measure of national security..." in response to claims that many American men had been rejected for military service in World War II because of diet-related health problems. Beginning in the early 1930's federal support had been provided for school lunch programs through donations of surplus commodities, and when these dried up during the War, by grants provided under annual appropriations laws. The original National School Lunch Act established multi-year authority for the financing of school feeding programs. It since has been amended numerous times and now permanently authorizes the national school lunch program and the child and adult care food program. Federally guaranteed subsidies are provided for every lunch served, with higher amounts generally provided for lunches served to low-income children who meet income criteria set by the law. This Act also requires federal payments for meals and snacks served to children and elderly and disabled persons in day care facilities (the child and adult care food program) and children in summer programs operated in low-income areas (the summer food service program), and it requires a set value of commodity assistance for each lunch served under these programs. Other activities supported by this Act include meals supplements for children in after-school care, a homeless children nutrition program, meal service for Department of Defense overseas dependents schools, and an information clearinghouse.

National School Lunch Program - This child nutrition program provides cash and commodity assistance to public and private nonprofit elementary and secondary schools and residential child care institutions to support lunches served to all children in schools and institutions that choose to participate; snacks served in after-school programs also are federally subsidized. While all lunches and snacks are federally assisted, larger federal subsidies generally are provided for meals (or after-school snacks) served to children from lower-income families — i.e., free or reduced-price lunches and snacks, as opposed to paid lunches and snacks. Each meal or snack is subsidized at legislatively established rates that are annually indexed for food-price inflation. The program is permanently authorized under Sections 4 and 11 of the National School Lunch Act, administered by the Food and Nutrition Service, and funded as an entitlement by annual agriculture appropriations acts.

National Shellfish Sanitation Program (NSSP) - A program under which the federal Food and Drug Administration works cooperatively with the states, the Interstate Shellfish Sanitation Conference, and industry to assure the safety of molluscan shellfish (clams, oysters, mussels). Among other things, all such products entering interstate commerce must be handled by state-certified dealers, properly tagged, tracked by appropriate records, and be processed in plants that meet sanitation requirements. The FDA continually reviews state shellfish control programs for effectiveness.

National Wetland Inventory - An ongoing national survey of wetlands conducted by the Fish and Wildlife Service, primarily for scientific purposes. The data and maps it produces were used to track gains and losses of wetlands for more than two decades. The wetland tracking function will be now be done by the Natural Resources Inventory, most recently conducted in 1997.

National Wildlife Refuge System (NWRS) - Consists of all of the National Wildlife Refuges, the Waterfowl Production Areas, and certain other small tracts managed by states under cooperative agreements with the Fish and Wildlife Service. In general, these areas are managed primarily for conservation of wild plants and animals (particularly waterfowl). Other uses, such as recreation, grazing, energy development, etc., are permitted to the extent they are compatible with the conservation purpose. Some refuges have additional purposes defined in law.

National Wool Act of 1954 - Title VII of Agricultural Act of 1954 was designated the National Wool Act and provided for a new and permanent price support program for wool and mohair to encourage increased domestic production through incentive payments. Wool and mohair commodity programs were in effect through marketing year 1995, at which time it was terminated under the explicit mandate of P.L. 103-130 (November 1, 1993).

Natural Resources Conservation Service (NRCS) - A USDA agency responsible for developing and carrying out national soil and water programs in cooperation with landowners, operators, and others. It was created in 1994 reorganization legislation by merging the Soil Conservation Service and many of the conservation cost-sharing programs of the Agricultural Stabilization and Conservation Service. The NRCS is responsible for developing and carrying out national soil and water conservation programs in cooperation with landowners, farm operators, and others. More than 70% of the approximately 12,000 employees work at the field level.

Navigable waters - Are "the waters of the United States, including the territorial seas." [33 U.S.C. §1362(7)]

Negligence - A legal concept which means that an individual failed to act in a reasonable and prudent manner in a situation where he or she had a duty to another person or the public. A person who is negligent is responsible for the damages the action or failure to act causes unless some defense is available.

Nematode - Microscopic soil worm, which may attack roots or other structures of plants and cause extensive damage.

NEPA analysis - Analyses conducted during the preparation of documents required under the National Environmental Policy Act of 1970, particularly environmental assessments and environmental impact statements.

Net cash income - A farm’s actual cash receipts and expenses in a given year, regardless of the year the goods sold were produced. In general, it serves as an indicator of the short-term financial condition of agricultural producers and their ability to pay household expenses, farm operating expenses, loan payments, and to purchase capital assets such as machinery. It consists of cash receipts from farm marketings of crop and livestock products, other cash income from such farm-related sources as machine hire, custom work and farm recreational activities, and direct government payments, less production expenses paid in cash. It excludes the non-monetary components of gross farm income and net farm income.

Net farm income - The return (both monetary and non-monetary) to farm operators for their labor, management and capital, after all production expenses have been paid (that is, gross farm income minus production expenses). It includes net income from farm production as well as net income attributed to the rental value of farm dwellings, the value of commodities consumed on the farm, depreciation, and inventory changes.

Net income (food stamps) - As relates to the food stamp program, net monthly income is an amount calculated for each food stamp household that, together with its size, effectively determines its food stamp benefit. It is calculated by reducing the household’s total cash monthly income by a series of deductions. The lower a household’s net income, the larger its food stamp benefit.

Net pen culture - A type of aquaculture where fish remain captive throughout their lives in marine pens built from nets, used by the salmon industry.

Network - A group of machines connected together so they can transmit information to one another. There are two kinds of networks; local networks and remote networks.

New Zealand Dairy Board (NZDB) - The New Zealand Dairy Board is a quasi- government corporation that was explicitly created by New Zealand statute to purchase all New Zealand dairy products that are manufactured for export. (New Zealand accounts for about 1 to 2% of world milk production, but has an export share of about 25% of the market.) The Board is governed by 13 Board members, 11 of whom are directors of New Zealand’s dairy cooperatives, and 2 are appointed by the government. It operates through a global network of marketing subsidiaries, based in the countries where New Zealand dairy products are sold. Through its purchasing activities and its system of premiums and penalties, it can encourage the production of dairy products that are in high demand and discourage those that are in surplus.

Nitrate - The nitrogen ion, NO3-, is derived from nitric acid and is an important source of nitrogen in fertilizers. Nitrate pollution of drinking water, shallow wells being particularly vulnerable, is of concern because infants are especially sensitive. A nitrate drinking water standard has been set under the Safe Drinking Water Act. An Environmental Protection Agency national survey of drinking water wells conducted from 1988 to 1990 indicated that 2.4% of rural domestic wells contained nitrate at or above the 10 mg/L standard. Higher rates of contamination have been found in areas of high vulnerability; for example, surveys along the upper Des Moines river indicate that 20 to 30% of wells exceed the standard.

Nitrogen - An element found in the air and in all plant and animal tissues. For many crops, nitrogen fertilizer is essential for economic yields. However, nitrogen can also be a pollutant when nitrogen compounds are mobilized in the environment (e.g., leach from fertilized or manured fields), are discharged from septic tanks or feedlots, volatilize to the air, or are emitted from combustion engines. As pollutants, nitrogen compounds can have adverse health effects (see nitrate and air pollution) and contribute to degradation of waters (see eutrophication).

No net cost - A provision requiring that a price support program be operated at no cost to the federal government. The No-Net-Cost Tobacco Act of 1982 required the participants in the 1982 and subsequent year tobacco programs to pay an assessment to cover potential losses in operating the tobacco price support program. The Food Security Act of 1985 required that USDA operate the sugar program at no cost. This provision applied through the 1996 crop year for the sugar crops, and was repealed by the FAIR Act of 1996. The 1996 changes to the peanut program are designed to ensure that it also operates at no cost.

No Net Cost Tobacco Act of 1982 - P.L. 97-218 (July 20, 1982) required that the tobacco price support program operate at no net cost to taxpayers, other than for the administrative expenses common to all price support programs. To satisfy this mandate, sellers and buyers (including importers) of tobacco are assessed equally to build a capital account that is drawn upon to reimburse the Commodity Credit Corporation for any losses of principal and interest resulting from nonrecourse loans. Other provisions of this law provided for reducing the level of support for tobacco and made various modifications to the marketing quota and acreage allotment programs.

No net loss wetlands policy - An overall policy goal for wetland protection first adopted by the Bush Administration, and more recently by the Clinton Administration. The goal is to halt the decline in the overall number of wetland acres in the country. It refers only to acres and does not compare the functions and values of wetlands gained and lost. Also, this goal does not address the question of whether it is acceptable to destroy some wetlands if at least the same number of acres are created or restored at another site. Currently there are about 100 million wetland acres, compared to about 200 million when the country was first settled.

No observable adverse effect level (NOAEL) - From long-term toxicological studies of agricultural chemical active ingredients, levels which indicate a safe, lifetime exposure level. Used in setting pesticide residue tolerances.

No-till farming - A method of planting crops that involves no seed bed preparation other than opening the soil to place individual seeds in holes or small slits; usually no cultivation during crop production; chemical weed control is normally used. May also be referred to as slot tillage or zero cultivation. See, for comparison, conservation tillage and minimum tillage.

Nonbasic commodities - Commodities other than basic commodities for which USDA is authorized to provide price support in permanent law. This includes soybeans and other oilseeds, milk, sugar beets, and sugarcane.

Noncompetitive imports - A term used by the Economic Research Service in its reporting of agricultural trade statistics to refer to imports of commodities not produced in the United States. Commodities such as tea, bananas, or coffee are considered noncompetitive imports. In contrast, imported commodities that are also produced in the United States are referred to as competitive imports.

Nonfarm income - includes all income from nonfarm sources (excluding money earned from working for other farmers) received by farm operator households.

Non-Governmental Organization (NGO) - A private sector nonprofit organization. Some NGOs working in international development are accredited by the United Nations or its agencies.

Noninsured Assistance Program (NAP) - Producers who grow a crop that is currently not eligible for crop insurance may be eligible for a direct payment under the Farm Service Agency’s noninsured assistance program (NAP). NAP has permanent authority under the Federal Crop Insurance Reform Act of 1994 and was designed to replace ad-hoc farm disaster legislation that was enacted nearly every year between 1988 and 1993. For a producer of an noninsured crop to become eligible for a payment, area-wide losses for that crop must be at least 35% of normal yields. Once the 35% area-wide threshold is reached, an individual producer must then experience a minimum crop loss of 50%. A noninsured producer then receives a payment comparable to an insured producer under catastrophic crop insurance coverage — 60% of the market price on losses in excess of 50%. A producer of a noninsured crop is subject to a payment limit of $100,000 per person and is ineligible for a payment if the producer’s qualifying gross revenues exceed $2 million.

Nonmoney income - A statistical allowance used in farm income compilations to credit farmers with income for the value of farm products used on the farm (instead of being sold for cash) and the rental value of farm dwellings. It assumes farmers otherwise live rent-free on their farm business premises.

Nonpoint source pollution (NPS) - Pollutants that are not discharged or emitted from a specific "point" source, such as a pipe or smokestack. Nonpoint water pollutants are often carried from dispersed, diverse sources into water channels by rain-induced runoff. Runoff from streets, open pit and strip mines, and agricultural fields are prominent examples (see agricultural pollution). Nonpoint source air pollutants (often called fugitive emissions) include small dispersed sources, e.g., fireplace smoke, and uncontained emissions, like dust blown from fields and unpaved roads.

Nonprogram crops - Any agricultural commodity not covered by federal commodity programs. Program crops are wheat, corn, barley, grain sorghum, oats, upland cotton, and rice.

Nonrecourse loans - Farmers or processors participating in government commodity programs may pledge certain stored commodities as collateral and obtain a loan from the CCC at a commodity-specific, per-unit loan rate. The borrower may repay the loan, with interest, within a specified period and regain control of the commodity. Alternatively, the commodity can be forfeited to the CCC at the end of the term with no penalty. The government takes no recourse beyond accepting the commodity as full settlement of the loan. The loans provide operating capital to producers of wheat, feed grains, cotton, peanuts, tobacco, rice, and oilseeds. Dairy processors (until 2000) and sugar processors (when imports are equal to or greater than 1.5 million short tons) are also eligible for nonrecourse loans. In the past, loan rates sometimes exceeded market prices. The CCC then became an alternative purchaser to the market, thereby supporting prices. For those commodities eligible for marketing assistance loan benefits, producers may repay the loan at the world price (rice and upland cotton) or posted county price (wheat, feed grains, and oilseeds).

Nonrenewable resources - Nonrenewable resources, in contrast to renewable resources, do not naturally replenish themselves within time limits that permit sustained yield (i.e., minerals and hydrocarbons, such as phosphate rock, limestone, petroleum). Nonrenewable resources may be called stock resources because of their fixed supply. Some resources, such as soil and water, can be termed either nonrenewable or renewable depending on circumstances. For example, some underground reservoirs replenish so slowly they are effectively nonrenewable, such as the Ogalala Aquifer. Soil that is eroding faster than its T value faces eventual depletion.

Non-road emissions - Pollutants emitted by non-road engines and non-road vehicles, e.g., farm and construction equipment, gasoline-powered lawn and garden equipment, and power boats and outboard motors. The Clean Air Act, §213, provides that the Environmental Protection Agency can issue regulations to limit emissions from these sources.

Nontariff trade barriers - Any restriction, charge, or policy other than a tariff, that limits access of imported goods. Examples of nontariff barriers include quantitative restrictions, mainly import quotas and embargoes; import licenses; exchange controls; state trading enterprises; bilateral agreements; and certain rules and regulations on health, safety, and sanitation. The Uruguay Round Agreement on Agriculture requires conversion of NTBs to bound tariffs and tariff-rate quotas, and that sanitary and phytosanitary measures be based on sound science.

Normal crop acreage - The acreage on a farm normally devoted to a group of designated crops. When a set-aside program is in effect, a participating farm’s total planted acreage of such designated crops plus set-aside acreage cannot exceed the normal crop acreage. The authority for set-asides was eliminated by the FAIR Act of 1996.

Normal flex acreage - A provision of the Omnibus Budget Reconciliation Act of 1990 requiring a mandatory 15% reduction in payment acreage. Under this provision, producers were ineligible to receive deficiency payments on 15% of their crop acreage base (not including any acreage removed from production under any production adjustment program). Producers, however, were allowed to plant any crop on this acreage, except fruits, vegetables, and other prohibited crops. Normal flex acreage no longer exists under the FAIR Act of 1996.

Normal yield - The average historic yield established for a particular farm or area. Can also describe average yields. Normal production would be the normal crop acreage planted multiplied by the normal yield. These measures, required by previous commodity programs to calculate benefits, are not required for production flexibility contracts under the FAIR Act of 1996.

North American Free Trade Agreement (NAFTA) - A trade agreement involving Canada, Mexico and the United States, implemented on January 1, 1994, with a 15-year transition period. The major agricultural provisions of NAFTA include: 1) the elimination of nontariff barriers - immediately upon implementation, generally through their conversion to tariff-rate quotas or ordinary quotas; 2) elimination of tariffs - many immediately, most within 10 years, and some sensitive products gradually over 15 years; 3) special safeguard provision; and 4) country-of-origin rules to ensure that Mexico does not serve as a platform for exports from third countries to the U.S.

North American Free Trade Agreement Implementation Act - P.L. 103-182 (December 8, 1993) approved and implemented the North American Free Trade Agreement (NAFTA). NAFTA pertains to cross-border trade between the United States, Mexico, and Canada. NAFTA substantially eliminated all nontariff barriers to agricultural trade between the United States and Mexico, generally through their conversion to tariff-rate quotas or ordinary tariffs, and maintained the provisions of the United States-Canada Free Trade Agreement on agricultural trade. With respect to Mexico, the law eliminated tariffs on a broad range of agricultural products and provided for a phase-out over up to 15 years for tariffs on other products. A special safeguard provision will apply to certain products, with a designated quantity of imports allowed at a NAFTA preferential tariff rate. NAFTA increases incentives for buying within the NAFTA region.

North American Industry Classification System (NAICS) - Standard industrial classification codes have been replaced in the 1997 Census of Agriculture by the new North American Industry Classification System (NAICS). NAICS is a unique, all-new system for classifying business establishments. It is the first economic classification system to be constructed based on a single economic concept. Economic units that use like processes to produce goods or services are grouped together. In the case of the Census of Agriculture, the shift from SIC codes to NAICS codes involves few changes. Farms are grouped into crop or livestock production and then into the subcategory which accounts for 50% or more of the total value of sales of agricultural products (i.e., cotton, tobacco, dairy).

North American Waterfowl Management Plan - An international program in cooperation with Mexico and Canada to protect, restore, enhance, and manage wetland ecosystems for migratory birds and other wildlife and fish. It was authorized by the North American Wetlands Conservation Act of 1989. This program is administered by the Fish and Wildlife Service, and USDA agencies participate as appropriate.

North American Wetlands Conservation Act - P.L. 101-233 (December 13, 1989), and amended in 1990 and 1994, authorizes a wetlands habitat program; administered by the Fish and Wildlife Service. The law authorized annual appropriations of up to $20 million to fund a grant program to protect and manage wetland habitats for migratory birds and other wetland wildlife in the United States, Mexico, and Canada. A nine-member council meets periodically to decide which projects to fund. The program encourages private-public cost-sharing projects. It must allocate between 50% and 70% of all funds to projects in Mexico and Canada, and no more than 50% of the U.S. share for projects in these countries can come from federal funds. Agricultural wetlands are not specifically identified in the law, and agricultural interests are not expressly represented on the council.

Northeast Interstate Dairy Compact - An agreement among the six New England States to support the farm price of milk used for fluid consumption at a higher level than under current federally mandated minimum prices in the region. Current law allows membership in the compact to expand to New York, New Jersey, Pennsylvania, Delaware, Maryland and Virginia, if the prospective state is contiguous to a member state, and if the compact is approved by the state legislature of the prospective state and the U.S. Congress. Under law, the compact must terminate when reforms to federal milk marketing orders are implemented by USDA, which has a statutory deadline of October 1, 1999.

Northern Europe (NE) cotton price - An average of the five lowest prices of several internationally-traded cottons (including cost, insurance, and freight) quoted for delivery in Northern Europe. The NE price is used by USDA in its formula for calculating the adjusted world price, used in administering marketing assistance loan and step 2 payment benefits under the cotton price support program.

Notification process - The annual process by which member countries report to the WTO information on commitments, changes in policies, and other related matters as required by the various agreements.

Noxious weeds - Undesirable plants that infest either land or water resources and cause physical and economic damage. Under the Federal Noxious Weeds Act of 1974, (P.L. 93-629, January 3, 1975), the Animal and Plant Health Inspection Service works to prevent noxious weeds from entering the country, and conducts cooperative control/eradication programs with the states. Local governments frequently impose taxes on landowners to carry out noxious weed control programs.

Nutrient - A chemical element or compound that is essential for the metabolism and growth of an organism.

Nutrient Management - the practice of applying fertilizers and plant nutrients such as manures in a time and manner to best ensure they will be taken up by growing plants and not leach into the groundwater or wash away. The term may mean the use of natural methods of enhancing soil fertility, such as through crop rotations and green manures, and the use of soil tests to determine the fertility needs of the soil.

Nutrient pollution - Contamination by excessive inputs of nutrient: a primary cause of eutrophication of surface waters, in which excess nutrients, usually nitrogen or phosphorus, stimulate algal growth. Sources of nutrient pollution include runoff from fields and pastures, discharges from septic tanks and feedlots, and emissions from combustion.

Nutrition Assistance Programs - Federal programs in Puerto Rico and American Samoa that provide food assistance through block grant funds in lieu of food stamps, and to the Northern Marianas under a covenant governing U.S. relations with that jurisdiction.

Nutrition Education and Training (NET) Program - Authorizes grants to states for a nutrition education program targeting school children, teachers, parents, and food service workers. The program is authorized under the Child Nutrition Act through FY2003 at an annual funding level of about $10 million.

Nutrition guidelines - Federal guidelines established for meals served in child nutrition meal service programs governing the types of foods and nutrient content required in order to be eligible for reimbursement.

Nutrition Labeling and Education Act of 1991 (NLEA) - P.L. 101-535 (November 8, 1990) mandated for the first time that most foods regulated by the Food and Drug Administration must be sold with nutrition labeling. The Act changed the list of nutrients that must appear on nutrition labels to focus on those of primary public health concern, adding saturated fat, cholesterol, total and subgroups of carbohydrates, and dietary fiber. Nutrition information was required on packaged and bulk foods, with few exceptions. A voluntary program was established for produce and seafood. Although NLEA did not directly affect the labeling of meat and poultry which is under the jurisdiction of USDA, comparable changes were made in the USDA labeling program for meat and poultry products in order to provide consistent nutrition labeling information on all food products for consumers.

Nutrition Program for the Elderly (NPE) - This program, authorized under Title III of the Older Americans Act, provides (1) basic grants to operate nutrition programs for the elderly, such as "meals-on-wheels" and congregate dining programs, and (2) additional cash payments or commodity assistance for each meal served. The basic grants are funded under annual appropriations to the Department of Health and Human Services and distributed by formula. The additional per-meal cash or commodity assistance is funded under annual appropriations to the Food and Nutrition Service. While states may opt for either cash or commodity assistance, most choose per-meal cash payments.

Occupational Safety and Health Administration (OSHA) - The U.S. Department of Labor agency responsible for administering the Occupational Safety and Health Act (P.L. 91-596). According to OSHA, farming is the nation’s most hazardous occupation. Agriculture is the largest occupational group in the U.S., with some 10 to 20 million people depending upon one’s criteria of "agriculture." The intrinsically seasonal nature of many segments of agriculture not only causes the size of this workforce to vary temporally and often geographically via migrant work groups, but usually also has major effects on the nature and intensity of the work itself. OSHA has issued safety standards relating to agricultural operations.

Ocean freight differential (under P.L. 480) - The difference between the cost of P.L. 480 shipments that are required to be carried on U.S. flag vessels compared to the cost that would have been incurred had they been carried on lower cost foreign bottoms. The U.S. government pays this difference either by paying the total freight, if the sale is made under Title II of P.L. 480, or by reimbursing the recipient country or private grain company (whichever pays the shipping) if the sale is made under Title I of P.L. 480.

Ocean ranching - A type of aquaculture, used mainly by the salmon industry, which cultures juvenile fish, releases them to mature in the open ocean, and catches them when they return as adults to spawn.

Offal - The less valuable byproduct material from the preparation of a specific product; primarily refers to the byproducts of meat and poultry plants, e.g., blood, bone, feathers, fat.

Offer versus serve - Refers to the option children may have to refuse one or more items offered as part of a federally subsidized school lunch or breakfast without losing eligibility for federal reimbursement.

Off-farm income - That portion of farm household income obtained off the farm, including nonfarm wages and salaries, pensions, and interest income earned by farm families. On average for all farms in the United States, off-farm income accounts for about 90% of farm operator household income.

Office of the Chief Economist (OCE) - The Office of the Chief Economist advises the Secretary of Agriculture on the economic implications of policies and programs affecting the U.S. food and fiber system and rural areas. The Chief Economist coordinates, reviews, and approves the USDA’s commodity and farm sector forecasts. In addition, the Chief Economist oversees the activities of the Coordinator of Agricultural Labor Affairs, the Director of Sustainable Development, the World Agricultural Outlook Board and the Office of Risk Assessment & Cost-Benefit Analysis.

Office of Migrant Education (OME) - An Office of the U.S. Department of Education that works to improve teaching and learning for migratory children. Programs and projects administered by OME are designed to enable children whose families migrate to find work in agricultural, fishing, and timber industries to meet the same academic content and student performance standards that are expected of all children.

Office of Technological Assessment (OTA) - Established in 1972, OTA is a nonpartisan support agency which serves Congress. Its purpose is to provide analyses of emerging, difficult, and technical issues that confront our society.

Offset - Liquidating a purchase of futures contracts through the sale of an equal number of contracts of the same delivery month, or liquidating a short sale of futures through the purchase of an equal number of contracts of the same delivery month. In other words, selling if one has bought, or buying if one has sold, a futures or option contract.

Offsetting compliance - A requirement that a farmer owning multiple farms who wishes to participate in a crop program must comply with the program’s provisions on all farms under the farmer’s ownership in order to be eligible for program benefits. This provision does not apply to production flexibility contracts enacted under the FAIR Act of 1996.

Oilseed crops - Primarily soybeans, sunflower seed, canola, rapeseed, safflower, flaxseed, mustard seed, peanuts and cottonseed, used for the production of cooking oils, protein meals for livestock, and industrial uses. These specific oilseeds are eligible for nonrecourse loans. Other oilseed crops include castor beans and sesame.

Oilseed meal - The product obtained by grinding the cakes, chips or flakes that remain after most of the oil is removed from oilseeds. Used as a feedstuff for livestock and poultry.

Omnibus Consolidated and Emergency Appropriations Act, FY1999 - P.L. 105-277 (October 21, 1998), among its numerous provisions that include the regular annual appropriations for most USDA programs, provided $5.9 billion in emergency spending for USDA programs to shore up farm income and to compensate farmers for natural disasters. More than one-half of this amount ($3.1 billion) was in the form of direct "market loss" payments to grain, cotton, and dairy farmers for income assistance. Most of the $2.4 billion balance was in the form of disaster payments made to farmers who experienced large crop losses in either 1998 or in 3 of the 5 years between 1994 through 1998.

Omnibus Trade and Competitiveness Act of 1988 - P.L. 100-418 (August 23, 1988) provided the President with negotiating authority for the General Agreement on Tariffs and Trade (GATT) Uruguay Round, U.S.-Canada Free Trade Agreement, and the North American Free Trade Agreement, and specified U.S. negotiating objectives regarding agriculture. The law revised statutory procedures for dealing with unfair trade practices and import damage to U.S. industries. It gave USDA discretionary authority to trigger marketing loans for wheat, feed grains, and soybeans, if it is determined that unfair trade practices exist.

Open burning - burning a material in a manner so the smoke

Open position - Ownership of a fixed-price forward contract, especially a futures contract.

Optional flex acreage - Under the planting flexibility provision of the Agricultural Act of 1949, as amended by the FACT Act of 1990, producers could choose to plant up to 25% of the crop acreage base to other CCC-specified crops (except fruits and vegetables) without a reduction in crop acreage bases on the farm, but receive no deficiency payments on this acreage. The Omnibus Budget Reconciliation Act of 1990 further amended the 1949 Act to make a 15% reduction in payment acreage mandatory. The remaining 10% was optional flex acreage. Optional flex acreage was eligible for deficiency payments when planted to the program crop. Optional flex acres no longer exist under the FAIR Act of 1996.

Options contract - An option contract gives the buyer the right, but not the obligation, to buy (call option) or sell (put option) a futures contract at a specific price within a specified period of time, regardless of the market price of that commodity.

Option premium, futures - The amount an option buyer pays the option writer for an option contract.

Option writer, futures - A person who sells an option contract, receives the premium, and bears the obligation to buy or sell the asset at the strike price.

Options contracts, futures - A contract traded on a commodity futures exchange that gives the buyer the right without obligation to buy or sell a futures contract over a specified time period. The FAIR Act of 1996 requires USDA to conduct research through pilot programs to determine if futures and options contracts can provide producers with reasonable protection from the financial risks of fluctuations in price, yield, and income inherent in the production and marketing of agricultural commodities.

Oral toxicity - Ability of a chemical to cause injury when ingested by mouth.

Orderly marketing - Coordination of the total supply of a commodity in order to achieve sellers’ joint market objectives. This is an activity carried out by some marketing order programs.

Organic - Chemically, a compound or molecule containing carbon bound to hydrogen. Organic compounds make up all living matter. The term organic frequently is used to distinguish "natural" products or processes from man-made "synthetic" ones. Thus natural fertilizers include manures or rock phosphate, as opposed to fertilizers synthesized from chemical feedstocks. Likewise, organic farming and organic foods refer to the growing of food crops without the use of synthetic chemical pesticides or fertilizers; pests are controlled by cultivation techniques and the use of pesticides derived from natural sources (e.g., rotenone and pyrethrins, both from plants) and the use of natural fertilizers (e.g., manure and compost). Some consumers, alleging risks from synthetic chemicals, prefer organic food products. The FACT Act of 1990 required USDA to define organic foods for marketing purposes and implement a National Organic Program.

Organic farming - There is no universally accepted definition, but in general organic farming is a production system which avoids or largely excludes the use of synthetically compounded fertilizers, pesticides, growth regulators, and livestock feed additives. To the maximum extent feasible, organic farming systems rely on crop rotation, crop residues, animal manures, legumes, green manure, off-farm organic wastes, mechanical cultivation, mineral bearing rocks, and aspects or biological pest control to maintain soil productivity and tilth, to supply plant nutrients and to control weeds, insects and other pests.

Organic foods - Food products produced by organic farming practices and handled or processed under organic handling and manufacturing processes as defined by several private and state organic certifying agencies. Once the National Organic Program is operational, there will a national standard for what constitutes organic foods based on uniform standards for organic production, processing, and handling.

Organization for Economic Cooperation and Development (OECD) - An international governmental organization established in 1961 (1) to formulate, coordinate and promote policies encouraging economic growth; (2) to stimulate and harmonize its members' efforts regarding the provision of financial and technical aid for developing countries; and (3) to contribute to the expansion of multilateral trade conducted on a nondiscriminatory basis. The OECD studies and discusses trade and related matters. Its current 29 members include the United States, Canada, the 15 countries of the European Union, Australia, New Zealand, Japan, and Turkey. More recently, Mexico, the Czech Republic, Hungary, Poland and South Korea have become OECD members.

Organoleptic - Relating to the senses (taste, color, odor, feel). Traditional USDA meat and poultry inspection techniques are considered organoleptic because inspectors perform a variety of such procedures—involving visually examining, feeling, and smelling animal parts—to detect signs of disease or contamination. These inspection techniques are not adequate to detect food borne pathogens that are of growing concern.

Organophosphates - Insecticides that contain phosphorus, carbon, and hydrogen. They are cholinesterase inhibitors; some are highly acutely toxic, but they usually are not persistent in the environment. Parathion is an example of an organophosphate.

Orthophotography - Aerial photographs that more precisely show the features of the landscape, including those that might be important for agriculture such as slope or size of gullies, because they are corrected for distortion caused by tilt, curvature, and ground relief.

Ozone - A highly reactive molecule composed of three oxygen atoms. Environmentally, ozone is important in two completely separate contexts—one, as a naturally occurring screen of harmful radiation in the outer atmosphere (i.e., stratospheric ozone), and two, as a component of polluting smog formed from emissions resulting from human activities (i.e., urban smog). In the stratosphere 7 to 10 miles above the Earth, naturally occurring ozone acts to shield the Earth from harmful radiation. In the 1970s and 1980s, it was discovered that emissions of certain chemicals catalyze destruction of stratospheric ozone, allowing more radiation to reach the Earth’s surface. The U.S. is a signatory to the 1987 Montreal Protocol on Ozone Depleting Substances, which bans or limits uses of chemicals whose emissions deplete stratospheric ozone. Among the chemicals being phased out as ozone depleters are chlorofluorocarbons used in refrigeration and air conditioning and methyl bromide, a pesticide. In the lower atmosphere (troposphere), ozone is a major air pollutant that contributes to smog, adversely affects human health, and is toxic to some plants, damaging forests and crops. Tropospheric ozone forms from reactions between nitrogen oxides and volatile organic compounds in the presence of sunlight. The precursor pollutants are emitted by combustion sources such as motor vehicles and utilities, use of solvents, and petrochemical facilities. Tropospheric ozone is regulated under a National Ambient Air Quality Standard.

P.L. 480 (or Public Law 480) - P.L. 83-480 (July 10, 1954), also called Food for Peace, is the common name for food aid programs established by the Agricultural Trade Development and Assistance Act of 1954, which seeks to expand foreign markets for U.S. agricultural products, combat hunger, and encourage economic development in developing countries. Title I makes export credit available on concessional terms, for example, at low interest rates for up to 30 years. Donations for emergency food relief and non-emergency humanitarian assistance are provided under Title II. Title III authorizes a Food for Development program that provides government-to-government grant food assistance to least developed countries. The FAIR Act of 1996 extends the authority to enter into new P.L. 480 agreements through 2002.

Packer concentration - The degree to which a few large firms dominate total sales within segments of the meat packing industry, which, some farmers and other critics contend, can cause or at least contribute to lower prices for their animals. Market control by five large packers in the early 1900s led to passage of the Packers and Stockyards Act of 1921. Concentration declined after that, but has increased sharply in more recent years. For example, the four largest firms accounted for 80% of the steer and heifer slaughter in 1997, compared with 36% in 1980. Four-firm concentration in hog slaughter increased to 54% in 1997 compared with 34% in 1980, according to USDA. Numerous government-sponsored studies and investigations have been inconclusive on the relationship in recent years between concentration and prices.

Packers and Stockyards Act of 1921 - P.L. 67-51 (August 15, 1921) remains, in amended form, the basic authority for USDA to regulate marketing practices in the livestock, poultry, and meat industries. The law was enacted to prevent unfair, deceptive, and monopolistic trade practices, focusing on livestock terminal and auction markets, livestock marketing agencies, dealers, meat packers, and live poultry dealers. The law also includes provisions to ensure that livestock and poultry producers are promptly paid when they sell their animals.

Paid diversion - A program, repealed by the FAIR Act of 1996, under which farmers were paid to voluntarily take acreage out of production. The diverted land was devoted to approved conservation practices. Unlike acreage reduction and set-aside programs, participation in a paid diversion program was not normally a condition of eligibility for other support program benefits.

Paid lunch (or breakfast, supper, or snack) - Refers to a federally reimbursed meal (or snack) bought by a child who does not qualify for a free or reduced price meal. Also often referred to as a "full-price" lunch, or a Section 4 lunch. See free lunch.

Palmer Drought Index - A measure of the severity of prolonged periods (months or years) of abnormal dryness or wetness over large regions, published periodically by the Joint Agricultural Weather Facility. The Palmer Index has long been used by the agriculture community to anticipate the potential effects of weather on crop development and yield.

Parity price - A measurement of the purchasing power of a unit of a particular commodity. Originally, parity was the price per bushel, bale, pound, or hundredweight that would be necessary for a unit of a commodity today to buy the same quantity of other goods (from a standard list) that the commodity could have purchased in the 1910-14 base period. Under permanent law, prices of some commodities would be supported at 50 to 90% of parity through direct government purchases or nonrecourse loans. In 1948, the parity price formula was revised to make parity prices dependent on the relationship of farm and nonfarm prices during the most recent 10-year period for nonbasic commodities. Basic commodities, including wheat, corn, rice, peanuts, and cotton use the higher of the historical or the new formula.

Parity ratio - The ratio of the prices received index, 1910-14=100, to the prices paid index on a 1910-14=100 base (called the parity index). The parity ratio is a measure of relative price relationships. It is not a measure of farm income, of farmers’ total purchasing power, or of farmers’ economic welfare. The well-being of the farm community depends upon a number of factors other than price relationships, such as changes in production efficiency and technology, quantities of farm products sold, and supplementary income (including income from off-farm jobs and federal farm programs). Over time the parity ratio has declined due to greater efficiency gains in agriculture. Compared to a parity ratio of 100 in the 1910-14 time period, the 1998 annual parity ratio was 42.

Particulates - The Environmental Protection Agency has set National Ambient Air Quality Standards for particulates. One, in effect since 1987, regulates particles smaller than 10 microns in diameter (PM10); the other, promulgated in 1997, would regulate particles smaller than 2.5 microns in diameter (PM2.5) — but court challenges are delaying its implementation. These are of interest to agriculture because dust from tillage and smoke from burning field residues may contribute to pollutant levels. Whether controls might be imposed on agricultural activities depends largely on how each state chooses to meet the standards, however.

Partners for Wildlife - A voluntary partnership program administered by the Fish and Wildlife Service to provide financial and technical assistance to private landowners who wish to protect or restore wetlands. This program has been widely used by rural landowners, including farmers.

Partners in Quality - An AMS documented quality assurance system for fresh produce packing houses. Those that incorporate the program’s rigorous quality standards and requirements (monitored by periodic unannounced AMS audits) into their ongoing daily operations may not have to undergo the traditional, more costly, and less flexible end-of-the-line inspection that AMS conducts before awarding a quality grade to the company’s products, according to the agency.

Pastureland - Land used primarily for the production of domesticated forage plants for livestock (in contrast to rangeland, where vegetation is naturally-occurring and is dominated by grasses and perhaps shrubs). Rotation pasture or cropland under winter cover crops is not included in this definition. The 1992 national resources inventory recorded 126 million acres of pastureland, 9% of all nonfederal rural lands.

Pathogen; pathogenic - Pathogens are infectious or toxin forming microorganisms causing disease. A food borne pathogen is a microorganism that causes illness through the ingestion of food.

Payment-in-kind (PIK) - In general, a payment made in the form of CCC-owned commodities (or title to them) in lieu of cash. This form of payment was widely used during the 1980s for paid diversion, deficiency payments, and export subsidy payments as a means of disposing of or avoiding the acquisition of commodity inventories. PIK certificates entitled the holder to a specific quantity of commodities.

Payment limitation - The maximum annual amount of commodity program benefits a person can receive by law. Persons are defined under payment limitation regulations, established by USDA, to be individuals, members of joint operations, or entities such as limited partnerships, corporations, associations, trusts, and estates that are actively engaged in farming. The three entity rule limits the number of farms from which a person can receive program payments. The FAIR Act of 1996 sets payment limits at $40,000 per person per fiscal year on production flexibility contracts (down from $50,000 on target price deficiency payments). The limits of $75,000/person/year with respect to marketing assistance loan gains and loan deficiency payments for crops of contract commodities or oilseeds is maintained.

Payment quantity - The quantity of production eligible for production flexibility contract payments under the FAIR Act of 1996. Payment quantity is calculated as the farm’s program yield (per acre) multiplied by 85% of the farm’s contract acreage (but subject to payment limitations).

Payment rate - Generally, the amount paid per unit of production (i.e., bushel, pound, hundredweight) to each participating farmer for eligible production under commodity income and price support programs.

Payments in lieu of taxes (PILT) - A program administered by the Bureau of Land Management of the Department of the Interior to compensate counties for the tax-exempt status of federal lands; the fixed payments per entitlement acre (on most but not all federal lands) are adjusted for low county populations and for other revenue-sharing payments (e.g., Forest Service county payments) in a complicated formula.

Peace clause - Term used to refer to Article 13 of the Uruguay Round Agreement on Agriculture which exempts certain policies from challenges in the World Trade Organization so long as countries are meeting their commitments under the agreement.

Peanut poundage quota - A peanut price support program supply control mechanism authorized by the Agricultural Adjustment Act of 1938 to regulate the marketing of peanuts consumed domestically for food when production becomes excessive. The FAIR Act of 1996 requires that (for the 1996-2002 crops) the poundage quota be set equal to projected food demand and related uses (but not including seed use). A related provision allocates a separate temporary (annual) quota to all peanut producers, based on the amount of seed peanuts planted on each farm. The national quota is allocated among states based on a historical share, and then divided among farms based on production history. Owners (via inheritance or purchase) of farm quota may sell peanuts produced against their quota, or sell, lease and transfer their quota to other producers. The FAIR Act of 1996 permits the sale, lease, and transfer of a farm quota across county lines up to specified limited percentages of a county’s total of all farm quotas. Quota owners in certain counties, depending on the size of the state or county quota, have unlimited rights to transfer their farm quota within the state. Government entities and out-of-state quota owners cannot hold quotas after the 1997 crop. Peanuts marketed outside the quota limits must be crushed for nonedible uses or exported and are called additional peanuts.

Peanut price support program - The federal program that supports the farm price of peanuts by offering price support loans to peanut growers and by placing limits on the amount of peanuts allowed to be sold for domestic food use. Farmers may sell peanuts produced in excess of marketing limits (referred to as the peanut poundage quota — one example of a marketing quota), primarily for export and crushing into peanut oil and meal. Two nonrecourse loan levels are available to producers, depending on the end use and destination of the peanuts sold. Peanuts marketed for food use in the United States (quota peanuts) are eligible for a higher loan reflecting the historical price premium associated with selling into the high-value domestic market. The FAIR Act of 1996 freezes the quota loan rate for the 1996-2002 crops at $610 per ton. All other peanuts (called additional peanuts) are eligible for a lower level of support ($175/ton for the 1999 crop) to ensure that the Commodity Credit Corporation does not incur any losses on its peanut loan operations. The 1996 Act also requires that the national peanut poundage quota be set at an amount equal to projected "domestic edible" (food) and related uses (excluding seed). For the 1999 crop, the national quota is set at 1.18 million short tons. Other provisions are designed to make the peanut support program operate as a no cost program.

Percolation - The movement of water downward and radially through subsurface soil layers, usually continuing downward to groundwater. The rate at which soils permit percolation is a measure of the vulnerability of groundwaters to contamination by surface waters as well as a determinant in the siting of septic fields.

Performance Based Inspection System (PBIS) - A computer-based system used by USDA’s meat and poultry inspection agency, the Food Safety and Inspection Service. The system organizes inspection requirements, schedules inspection activities, and maintains records of findings for meat and poultry processing operations under federal inspection. PBIS has been at issue because consumer advocates and some inspectors have contended that it is not flexible and "second-guesses" inspectors’ more reliable experience and judgment. USDA views it as an objective tool for inspection that enhances rather than undermines inspectors’ roles.

Perishable Agricultural Commodities Act (PACA) of 1930 - P.L. 71-325 (June 10, 1930), as amended, regulates the buying and selling of fresh and frozen fruits and vegetables to prevent unfair trading practices and to assure that sellers will be paid promptly. Both produce sellers and buyers must pay fees for a license in order to do business, and these license fees are the source of funding for a trust program that resolves disputes and protects sellers from non-payment when buyers become bankrupt. Amendments to the Act in 1995 (P.L. 104-48) include a 3-year phase out of the annual license fees for retailers and grocery wholesaler-dealers to be replaced by one-time fee.

Perishable commodities - Farm goods that prior to processing cannot be stored for a substantial period of time without excessive loss through deterioration or spoilage. Examples of perishable commodities are fresh fruits and vegetables, meat and poultry. Most of the commodities purchased by the Agricultural Marketing Service under Section 32 authority are perishable items.

Permanent law - Legislation that would be in force in the absence of all temporary or short-term laws (e.g., farm bills). The Agricultural Adjustment Act of 1938, the Agricultural Act of 1949, and the Commodity Credit Corporation Charter Act of 1948 serve as the basic laws authorizing the major commodity programs. Technically, each new farm bill (including the FAIR Act of 1996) amends the permanent law for a specified period. The FAIR Act of 1996 also repealed some provisions of permanent law and suspended other provisions through 2002. Many programs and activities of USDA are authorized by permanent laws that are periodically amended.

Permanent vegetative cover - Trees, or perennial grasses, legumes, or shrubs with an expected life span of at least 5 years. Permanent cover is required on cropland entered into the Conservation Reserve Program.

Permitted acreage - The acreage on which a farm program participant is permitted to grow a program crop after satisfying acreage reduction requirements. For example, when a 10% acreage reduction program is in effect for wheat, a farmer with a 100-acre wheat base may grow wheat on 90 acres, the permitted acres. Limits on production are eliminated by the FAIR Act of 1996 through the year 2002.

Persistent pesticides - Pesticides that do not readily break down in the environment. Becoming long-lived components of the ecosystem, these chemicals may have enduring effects at low concentrations or may bioaccumulate, posing hazards to higher predators.

Person - An entity defined by USDA as being eligible to receive federal farm program benefits, subject to annual payment limitation constraints. A "person" may be an individual farmer, an individual member of a joint operation, a corporation, a joint stock company, an association, a limited partnership, a trust, an estate, or a charitable organization. A husband and wife are considered one person for payment limitation purposes. A joint operation is not a person; neither is a cooperative association of producers that markets commodities for producers.

Personal Responsibility & Work Opportunity Reconciliation Act of 1996 - P.L. 104-193 (September 22, 1996) was labeled as a major "welfare reform" initiative. In addition to provisions making major changes to federal cash welfare, Medicaid, work, and child care development programs, this law revised the food stamp program and several commodity distribution programs (notably the emergency food assistance program and the soup kitchen food bank program).

Pest - An animal or plant that is directly or indirectly detrimental to human interests, causing harm or reducing the quality and value of a harvestable crop or other resource. Weeds, termites, rats, and mildew are examples of pests.

Pest resistance management (PRM) plans - To protect the continued use of biopesticides, the Environmental Protection Agency is requiring companies developing transgenic crops (see genetic engineering) to submit and implement pest resistance management (PRM) plans as a requirement of product registration. If they are exposed to a toxin excessively, most insect populations can develop resistance, making pest control products less effective. With new biopesticide technologies comes the concern that pests will rapidly develop resistance to natural insecticides. A resistance management plan is intended to sustain the useful life of transgenic technology.

Pest scouting - Inspecting a field for pests, including insects, weeds, and pathogens. Pest scouting is a basic component of integrated pest management programs. It is used to determine whether pest populations are at levels that warrant control intervention and also may help to determine the most appropriate method of control.

Pesticide - A substance used to kill, control, repel, or mitigate any pest. Insecticides, fungicides, rodenticides, herbicides, and germicides are all pesticides. Environmental Protection Agency regulates pesticides under authority of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). In addition, under FIFRA, a substance used as a plant regulator, defoliant, or desiccant is defined as a pesticide and regulated accordingly. All pesticides must be registered and carry a label approved by EPA.

Pesticide Data Program (PDP) - A program initiated in 1991 by the Agricultural Marketing Service to collect pesticide residue data on selected food commodities, primarily fruits and vegetables. PDP data are used by the Environmental Protection Agency to support its dietary risk assessment process and pesticide registration process, by the Food and Drug Administration to refine sampling for enforcement of tolerances, by the Foreign Agricultural Service, to support export of U.S. commodities in a competitive global market, by the Economic Research Service to evaluate pesticide alternatives, and by the public sector to address food safety issues.

Pesticide Recordkeeping Program (PRP) - Authorized by the FACT Act of 1990, the program requires that private pesticide applicators keep records of the pesticides they use in agricultural production and that the records be surveyed to provide a database on restricted-use pesticides.

Pfiesteria piscicida - A microbe that has been linked to massive fish kills in Maryland, Delaware and North Carolina. Some scientists believe pfiesteria’s growth is fostered by nutrients such as nitrogen and phosphorus from air pollution, cities, suburbs, sewage plants and farms. Both nitrogen and phosphorus are concentrated in chicken manure, which is spread liberally on farmland as fertilizer in watersheds adjoining the affected rivers. While there is no proven direct connection, the farm community is involved in efforts to identify the causal linkages and remedy the problem.

pH - An expression of the intensity of the basic or acidic condition of a liquid or of soil; the logarithmic scale ranges from 0 to 14, where 0 is the most acid, 7 is neutral, and above 7 is alkaline. Natural waters usually have a pH between 6.5 and 8.5. Plants have differing tolerances for acidity and alkalinity.

Phosphorus - An essential nutrient for plants and animals that is commonly applied to crops as a phosphate fertilizer. Phosphorus can contribute to the eutrophication of lakes and other water bodies. Sources of excess phosphorus include sewage and agricultural runoff.

Phytoremediation - The systematic use of plants to treat environmental contamination. It is being investigated as a potential low-cost technology to help meet environmental regulations. For example, it has been discovered that young seedlings of Indian mustard (Brassica juncea) grown in aerated water are very effective at removing toxic metals from water.

Plant germplasm - Living material such as seeds, rootstock, or leaf plant tissue from which new plants can grow.

Plant hardiness zones - The USDA has divided North America into 11 hardiness zones based on average annual minimum temperatures. Horticulturalists and nurseries rate plants by their hardiness; the hardiness zone maps can then be used to determine the likely survivability of particular plant species and varieties according to one’s local growing area.

Plant quarantine - A technique for insuring disease (and pest) free plants by isolating them during a period while performing tests for latent diseases. Often used when importing new cultivars.

Plant Quarantine Act - Originally enacted in 1912, this Act gives the Animal and Plant Health Inspection Service authority to regulate the importation and interstate movement of nursery stock and other plants that may carry pests and diseases that are harmful to agriculture. This authority is particularly important to the agency’s ability to prevent or limit the spread of harmful invasive species within or to a state or region of the United States.

Plant-pesticide - As proposed by the Environmental Protection Agency (November 23, 1994), plant-pesticides are all substances responsible for pest resistance in plants, as well as the genes needed for production of these substances. EPA has further proposed that plant-pesticide traits introduced into plants using recombinant DNA techniques should be registered under legal requirements of FIFRA and FFDCA. Exempt from tolerance requirements would be those defense substances and genes evolved naturally or transferred to the plant by traditional plant breeding methods.

Plant regulator - A chemical that affects the physiological behavior of plants, for example through accelerating or retarding the rate of growth or maturation of produce. Typically the definition of plant regulator excludes nutrients. Plant regulators must be registered as pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act.

Plant Variety Protection Act of 1970 - P.L. 91-577 (December 24, 1970) was enacted to provide patent-like protection for new non-hybrid seed varieties. The ultimate goal was to create an incentive for public and private research on new commercial plant varieties by making it possible for scientists to benefit financially from developing them. The Plant Variety Protection Act (PVPA) Amendments of 1994 ( P.L. 103-349, October 6, 1994) made the law consistent with the International Convention for the Protection of New Varieties of Plants (UPOV) of March 19, 1991, to which the United States is a signatory. In February 1999, the 1994 PVPA amendments formally were accepted by UPOV as being in conformance with the International Convention. USDA rather than the Patent and Trademark Office administers the law.

Point - A measure of price change equal to 1/100 of one cent in most futures contracts traded in decimal units. In grains, it is one cent; in T-bonds, it is one percent of par.

Point source pollution - from the Clean Water Act,a source of pollution from "any discernable, confined and discrete conveyance, including but not limited to any pipe, ditch, channel, tunnel, conduit, well, discrete fissure, container, rolling stock, concentrated animal feeding operation, or vessel or other floating craft, from which pollutants are or may be discharged." Irrigation return flows and agricultural storm water discharges are specifically exempted from the definition. Point sources of pollution are amenable to regulation through specific effluent limitations which require monitoring and treatment of the waste stream. The wastes coming out of the end of a pipe at a factory are an example of point source.

Police power - The constitutional power which authorized governments to protect the health, safety and welfare of the public. Adoption of environmental protections laws are a use of the police power.

Pollution - Alteration of the environment, as through the introduction of hazardous or detrimental substances, heat, or noise whose nature, location, or quantity produces adverse health or environmental effects. Under Section 502 of the Clean Water Act, for example, pollution means the man-made or man-induced alteration of the physical, biological, chemical, and radiological integrity of water.

Pomology - The science or study of growing fruit.

Pork bellies - One of the major cuts of the hog carcass that, when cured, becomes bacon. Futures contracts for pork bellies are traded in the futures market.

Posted county price (PCP) - This price is calculated for wheat and feed grains for each county by the Farm Service Agency. The PCP reflects changes in prices in major terminal grain markets (of which there are 18 in the country), corrected for the cost of transporting grain from the county to the terminal. It is utilized under the marketing loan repayment provisions and loan deficiency payment provisions of the wheat and feed grains commodity programs. Rice and cotton use an adjusted world price as the proxy for local market prices.

Postharvest - Refers to activities in the food and fiber sector that occur after agricultural products are sold from, or leave, the farm or ranch. In total, about 75% of the retail cost of the market basket of foods is added in postharvest activities.

Postmortem inspection - As used in the meat and poultry inspection program, the phrase refers to the inspection that Food Safety Inspection Service inspectors are required to conduct of all animal carcasses immediately after they are killed.

Poultry Products Inspection Act of 1957 - P.L. 85-172 (August 28, 1957), as amended by the Wholesome Poultry Products Act of 1968 (P.L. 90-492, August 18, 1968), requires USDA to inspect all "domesticated birds" when slaughtered and processed into products for human consumption. The USDA has defined, by regulation, domesticated birds as chickens, turkeys, ducks, geese, and guineas. The primary goals of the law are to prevent adulterated or misbranded poultry and products from being sold as food, and to ensure that poultry and poultry products are slaughtered and processed under sanitary conditions. These requirements also apply to products produced and sold within states as well as to imports, which must be inspected under equivalent foreign standards.

Poundage quota - A quantitative limit on the amount of a commodity that can be marketed (also called a marketing quota) under the provisions of a permanent law. Once a common feature of price support programs, this supply control mechanism now only restricts the production and/or sale of tobacco and peanuts.

Poverty guidelines - These are monthly or annual income amounts that are used to help determine eligibility for a number of federal food assistance and other programs. They are derived from the income poverty thresholds used by the Census Bureau in counting the number of poor persons, differ by household size, are adjusted upward for Alaska and Hawaii, are published by the Department of Health and Human Services early each spring, and are updated annually for overall inflation. For example, 130% of the income poverty guidelines is the limit for food stamp and free school lunch income eligibility. Sometimes referred to as the Office of Management and Budget (OMB) poverty guidelines.

Poverty thresholds - For statistical purposes (e.g., counting the poor population), the Census Bureau uses a set of annual income levels — the poverty thresholds — slightly different than the federal poverty guidelines. As with the poverty guidelines, they represent a federal government estimate of the point below which a household of a given size has cash income insufficient to meet minimal food and other basic needs. They were developed in the 1960s, based largely on estimates of the minimal cost of food needs, to measure changes in the poor population. The thresholds form the basis for calculating the poverty guidelines, and, like them differ by household size and are adjusted annually for overall inflation. But, they do not include different levels for Alaska and Hawaii, and include separate levels for small elderly households.

Prairie potholes - A type of wetland that is at the center of a shallow depression characteristic of glaciated areas in the Upper Midwest (North Dakota especially). Many potholes are wet during only a portion of the year, usually early spring. They provide important nesting habitat for migratory waterfowl, and were designated as a national priority area by the Secretary of Agriculture under the Conservation Reserve Program.

Precision farming - Farmers use global positioning (GPS) technology involving satellites and sensors on the ground and intensive information management tools to understand variations in resource conditions within fields. They use this information to more precisely apply fertilizers and other inputs and to more accurately predict crop yields.

Preferential trade agreements - Agreements among a group of countries to extend special trading advantages, usually tariff rates that are lower than most-favored nation rates. The U.S.’s Caribbean Basin Initiative and the EU’s Lome Convention which provides preferential access for exports of former EU member countries’ colonies in Africa, the Pacific and the Caribbean are examples of preferential trade agreements.

Preharvest - Refers to activities on the farm or ranch that occur before crop or livestock products are sold. "Preharvest food safety activities," for example, is a term often used to describe USDA’s efforts, through research and cooperative work, to foster changes in on-farm production that can reduce public health risks in live animals before they are sent to slaughter.

Preproduction expenses - Expenses incurred prior to the period when a farm activity begins producing, primarily raising orchard trees or breeding animals.

Prevented planting acreage - Land on which a farmer intended to plant a program crop or insurable crop, but was unable to because of drought, flood, or other natural disaster. Used in the calculation of disaster payments and crop insurance indemnity payments.

Price elasticity of demand - The relationship between the change in the price of a commodity and the corresponding change in the quantity that is sold. If a small change in the price is accompanied by a relatively large change in the quantity sold, demand is said to be elastic (responsive to price changes). But if a large change in the price is accompanied by a small change in the quantity sold, demand is said to be inelastic. The demand for many farm products is relatively price inelastic. As a result of low price elasticity of demand, shifts in supply can have large impacts on prices. For example, the presence of surpluses results in disproportionately large price declines, and conversely shortages result in large price increases. For these reasons, agriculture often is described as an inherently unstable industry.

Price index - Current price expressed as a proportion to the same price in an earlier time period, commonly called the base period. Monthly price indexes computed by the National Agricultural Statistics Service are the index of prices received by farmers and the index of prices paid by farmers for commodities and services, interest, taxes, and farm wage rates. The ratio of these two indexes is referred to as the parity ratio.

Price support - Programs operated by USDA that are intended to raise farm prices when supply exceeds demand and prices are unacceptably low. Support usually is achieved through nonrecourse loa